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Technology Stocks : ATLPA: Odetics spinoff and IPO

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To: MarkL who wrote (563)5/24/1998 3:24:00 AM
From: Gary Leger   of 576
 
Mark,

I called investor relations and got a call back from Kevin Daly. We had a nice chat wherein he explained the formula to me. The main risk is that the qntm stock falls out of bed at the END of the 45 day period and the average is higher than the price when we get our shares.. Also the qntm stock could fall after our 45 day average expires but before we receive qntm stock. I guess you could short qntm before the 45 days is up to lock in your profit??

I'm trying to figure out a hedging strategy but can only come up with imperfect hedges. Maybe a put and call straddle on qntm might work??

I guess most folks have taken their money and run. I'm surprised the arbs aren't buying for the 10% 4 month gain which is reasonably available??
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